Buyouts are best when you are ready to exit your business. In most cases, a buyout is a sales of 100% of your company or a controlling majority ownership.
Growth Equity is a strategy that allows you to retain the majority ownership of your company and to bring a strategic partner with cash infusion for a non-controlling position/ownership of your business.
Growth Equity Investment is typically an infusion of cash into the business that is pursuing production capacity expansion, funding sales and marketing to promote the product overseas, buying a strategic asset (another company or brand) that would create certain synergies on a combined basis and so on.
Ready to scale your business or expand market share - Growth Equity might be the best way to go. Capital infusion and strategic partnership can go a long way for your business!
With the abundance of capital today, it may seem easy to find a growth equity infusion. As a business owner, you should consider 3 main points:
1. Strategic Growth Equity Investor with deep knowledge of your industry.
2. Minority Interest and what responsibilities and guarantees it comes with.
3. Follow-on investment Right of First Refusal and Antidilution Clauses.
Growth Equity is not simply accepting the investment and using it for expansion, it must be thought through as bringing a partner who will participate and fight for the growth and expansion of your business.
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